5, which of the following statements about common stock is NOT CORRECT? right. b. Managers of a firm are hired, fired and compensated by the shareholders, and hence are supposed to work for the best interest of shareholders, i.e, share price maximization. Unlike interest payments, dividends are not an obligation and failing to pay dividends won't put a firm in default. Dividends are after-tax payments and do not create tax savings for the company. c. d